Linking Knowledge Management and Employee Engagement

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1 Linking Knowledge Management and Employee Engagement Will They Tell You What They Know? Dr. Robert Downing Newport News Shipbuilding

2 Newport News Shipbuilding Newport News Shipbuilding A Subsidiary of Huntington Ingalls Industries

3 Quotes from Survey Participants I usually only share info when asked. I don't offer and do not press if the suggestion is not well received. Basically, I will share and ask for advice from anyone I wouldn't share/ask for information from people who are extremely high up in management or people who are arrogant. If you think you can just flip a switch and I m going to give you my best ideas that s never going to happen. 3

4 Types of Knowledge Tacit Knowledge : is inside of peoples heads or in the Brains of Employees. It has not been captured, so it has not been formalized or organized. The knowledge can not be easily accessed by other employees. Explicit knowledge: Knowledge that has been articulated, captured, or codified (Nichols, 2000) Written down. 4

5 Problem: Losing Tacit Knowledge at a Faster Rate Potential exists for significant knowledge loss. Large portion of workforce moving to retirement years Employees retire before their knowledge can be captured What are you experiencing? 6

6 Fear of Losing Your Knowledge Exercise Interview each other to determine knowledge at risk: 5 minutes 15 minutes to report Goal: To capture the unique/perishable knowledge 9

7 Increased Retirement Continuing Knowledge Loss Smaller Pool of Qualified Applicants Increased Retirements (and other attrition) 10

8 The Sources and Transfer of Knowledge Paper Documents 7% Electronic Documents Electronic Mail Files Electronic Knowledge Bases 16% 13% 13% Brains of Employees 0% 10% 20% 30% 40% 50% 60% 51% 80-90% of the corporate knowledge is in peoples heads 11

9 Problem with Sharing Knowledge Slightly over 10% of the knowledge transfer events involved hiding knowledge. Connelly, Zweig, Webster & Trougakos (2012). From a Gallup Perspective Disengaged Employees Are you concerned with Employee Engagement? 12

10 Common Management Assumption A common management assumption is that employees freely and openly will share their knowledge. This assumption seems to be based on the attitude that the company owns the knowledge that resides within the employees heads Jarvenpaa & Staples (2001). 13

11 What does this impact? Process Improvement / Development Problem Solving / After Action Reporting / Hot Washes / Critiques / Lessons Learned Training Development Requirements Gathering / Mind Mining Production Mentoring : Shirt sleeve to shirt sleeve New Employee Development 14

12 Purpose of the Tacit KM Study Research Background: Developing predictors of general knowledge transfer not just opinion. The purpose of this study was to develop predictors or indicators of tacit-knowledge transfer. 30 questions / 5 categories Perceived management commitment Social interaction Trust Rewards Status 15

13 Results of Linear Regression Variable composite B SE B β t p Trust ** Perceived management commitment ** Social-interaction climate ** Reward * Status

14 Link to Gallup (Best Friend at Work) Tacit KM Survey Questions and Scores Question Score 26 You and Pat both work at your company. Both of you started work at the same time and have been Friend Mean Score 6.7 (out of 7) on KM Sharing Survey friends ever since. Would you share Note: This is the highest mean with Pat? score of all the survey questions. 95.7% will share 17 You and Pat both work at your company in completely different divisions and have never met each other. Would you share with Pat? Don t Know Them Mean Score 5.0 on KM Sharing Survey 71.4% will share 18 You and Pat both work at your company. Pat has a reputation for never helping anyone. Would you share with Pat? Perhaps, Don t Like Them Lowest Mean Score 4.5 on KM Sharing Survey 64.3% will share 17

15 Link to Gallup (Best Friend at Work) Tacit KM Survey Questions and Scores Question Score New You and Pat both work at your company in completely different divisions. The two division have been fighting over turf and responsibilities for some time. Would you share with Pat? New You and Pat both work at your company. Pat stabbed you in the back two weeks ago. Would you share with Pat? Fighting over Turf 10% Stabbed you in the Back 3.36% 18

16 Significance Knowledge sharing is Situational it depends on the Situation and how the employees feels about sharing. Note: This is not just bad employees not sharing. This is good employees not sharing depending on the situation. Question: Does this apply to all discretionary effort from employees? Gallup says Yes 19

17 Employee Engagement, the Missing Link Black Box Magic Occurs Employee Engagement Productivity & Profitability Knowledge Sharing Culture Impacts Productivity 20

18 Q12 Employee Engagement I know what is expected of me at work. I have the materials and equipment I need to do my work right. At work, I have the opportunity to do what I do best every day. In the last seven days, I have received recognition or praise for doing good work. My supervisor, or someone at work, seems to care about me as a person. There is someone at work who encourages my development. At work, my opinions seem to count. The mission/purpose of my company makes me feel my job is important. My associates (fellow employees) are committed to doing quality work. I have a best friend at work. In the last six months, someone at work has talked to me about my progress. This last year, I have had opportunities at work to learn and grow. 23 Copyright 2009 Gallup, Inc. All rights reserved.

19 Why Is Employee Engagement So Important? Copyright 2009 Gallup, Inc. All rights reserved. 24

20 The value of the Q12 TOP-QUARTILE vs. BOTTOM-QUARTILE 30% 20% 10% 0% -10% Shrinkage High- Turnover Orgs. Turnover Low- Turnover Orgs. Absenteeism Safety Incidents Patient Safety Incidents Quality (Defects) 10% Customer 21% 22% Profitability Productivity -20% -30% -40% -50% -60% -37% -25% -28% -48% -41% -41% -70% -65% Business units in the top engagement quartile have 48% fewer safety incidents and 41% fewer quality Copyright 2009 Gallup, Inc. All rights reserved. defects than their bottom-quartile counterparts. 25

21 ENGAGEMENT = PERFORMANCE Grand Mean Shop A th Percentile th Percentile

22 PERFORMANCE Accidents Shop A FTQ Shop A % Drop % 98.8% 98.6% 98.4% 98.2% 98.0% 97.8% 97.6% 98.8% 98.1% Manhours/Detail Shop A % Drop Cost Performance Index Shop A % Increase

23 CHALLENGE TO LEAN PROFESSIONALS If Knowledge Sharing is voluntary, how do we increase the likelihood that colleagues and customers will share their knowledge? 28

24 PLACEHOLDER - EXERCISE Give out Q12 handout Ask: Which of these questions would be effected by implementing a knowledge management program 10 minutes 31

25 STRATEGIC (VS. PIECE-MEAL APPROACH) a strategy and/or practice used to identify, capture and retain knowledge, information, skills and relationships that are critical to the current and future performance of a organization. Hope and handwringing is not a Strategy 32

26 IN CONCLUSION We can increase knowledge sharing (and Employee Engagement) by increasing Trust (Friend at work). Trust is necessary for employee engagement (and Knowledge Sharing), and Social Interaction is necessary to build that Trust. Part of the process to increase Trust is to allow/encourage more social interaction at work (developing the Friend at work). The actions that increase Knowledge sharing are also likely to increase Employee Engagement. Necessary that employees perceive management commitment. 33

27 REALLY - IN CONCLUSION Knowledge Sharing is a gift. So, how do you encourage gift giving? And, are you ready to receive the gift? 34

28 OPTIONS FOR ACTION Do Nothing Expected Results? Do Something Expected Results? 35

29 Contact Information Robert E. Downing, Ed.D. Newport News Shipbuilding - Huntington Ingalls Industries Bldg. 520, 4th Floor 4101 Washington Avenue Newport News, VA (757) , cell (757) roberte.downing@hhi-nns.com 36

30 Thank You! Please complete the session survey at: Session: ThP/37 Linking Knowledge Management and Employee Engagement Dr. Robert Downing Newport News Shipbuilding

31 Resources Conoco-Phillip s knowledge retention strategy slides and presentation materials: - Slides: - Recording: Webinars/ _August_KM_CC.wmv Additionally, The Tennessee Valley Authority (TVA) freely shares their KM materials: Finally, let me also suggest that the Knowledge Management materials from The America Productivity and Quality Center (APQC) offer a wealth of information. 38

32 Resources Conoco-Phillip s knowledge retention strategy slides and presentation materials: - Slides: - Recording: /2014_Webinars/ _August_KM_CC.wmv Additionally, The Tennessee Valley Authority (TVA) freely shares their KM materials: Finally, let me also suggest that the Knowledge Management materials from The America Productivity and Quality Center (APQC) offer a wealth of information. 39

33 References American Productivity & Quality Center. (2005b). Knowledge management: Building and sustaining effective communities of practice. Training manual. Houston, Texas: Author. Connelly, C. E., Zweig, D., Webster, J., & Trougakos, J. (2012). Knowledge hiding in organizations. Journal of Organizational Behavior, 33(1), Halbert, G. D., (2012, April 10) Will Baby Boomers Wreck the Market? (The Sequel). Retrieved from Forecasts & Trends E-letter, Harter, J.K., Schmidt, F.L., Killham, E.A., & Agrawal, S. (2009). Q 12 Meta Analysis: The Relationship between engagement at work and organizational outcomes. Washington, D.C.: Gallup University Press. Jarvenpaa, S. L., & Staples, D. S. (2001). Exploring perceptions organizational ownership of information and expertise. Journal of Management Information Systems, 18(1), All clipart images in this presentation are copyrighted works of Microsoft. Individual elements of this presentation may not be copied without the express written permission of Huntington Ingalls Industries. 40

34 References Kouzes, J. & Posner, B.(2007). Leadership Challenge. San Francisco, CA: Jossey-Bass. Longwood, Nancy : Leveraging Employee Engagement for Competitive Advantage : HR s Strategic Role (2007). Nichols, F. (2000). The knowledge in knowledge management. In J. W. Cortada & J. A. Woods (Eds.), The knowledge management yearbook , Boston: Butterworth-Heinemann. Rath, T. & Conshie B. (2008) Strengths Based Leadership, New York, NY. Gallup Press Webster, J., Brown, G., Zweig, D., Connelly, C. E., Brodt, S., & Sitkin, S. (2008). Beyond knowledge sharing: Knowledge withholding at work. In J. J. Martocchio (Ed.), Research in personnel and human resources management Vol. 27 (pp. 1-37). Bradford: Emerald Group Publishing. All clipart images in this presentation are copyrighted works of Microsoft. Individual elements of this presentation may not be copied without the express written permission of Huntington Ingalls Industries.

35 TVA Knowledge Retention Knowledge Retention Step 1: Conduct Assessment Step 2: Determine Approach Step 3: Evaluate index.html TVA has given us permission to share their materials - 05/06/14 42

36 Facing the Attrition Challenge Critical Issues Focusing on the critical positions where knowledge loss is the greatest threat Identifying and prioritizing the specific knowledge and skills at risk Developing concrete, actionable responses to mitigate this loss. briefing.pdf 43

37 The Knowledge Retention Process Three main questions: 1. Specifically, what knowledge is being lost? 2. What are the business consequences of losing each item of knowledge? 3. What can we do about each item? briefing.pdf 44

38 Overall Process Who? Garner support and resources Establish sponsors and agents Define near- and long-term objectives What? Determine relative risks Identify positions/people Prepare interviewers and interviewees Conduct interviews/info gathering Compile lists of knowledge/skills Confirm 45 So What? Assess consequences of loss Categorize and prioritize Confirm Now What? Identify responses Establish schedules, responsibilities, measures, etc. Approve and implement Monitor and extend

39 Strategic Lessons Learned There is a logical process Focus on Critical Positions -- One job at a time Lots of detailed work, analysis, planning, and project management Limited number of ways to deal with it. Everyone must do their part - management, HR, supervisors, process owners, KM professionals pdf 46

40 Tactical Lessons Learned Clarify purpose to employees & defuse concerns Include newer employees as observers How did you learn it? enlightening Clusters of knowledge based on career path Safety and reliability/risk drive priorities Retirees can be a continuing resource briefing.pdf 47